Keith Ashworth-Lord reveals how to apply the principles of Warren Buffett for long-term investing success

Keith Ashworth-Lord reveals how to apply the principles of Warren Buffett for long-term investing success

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“This book gives a fascinating insight into a fund that's unashamedly devoted to applying Warren Buffett's philosophy to the UK stock market. It will appeal to investors who want to develop their investment style and strategy.”Moira O'Neill, Editor, Moneywise

Invest in the Bestconcentrates on the investment style of Business Perspective Investing, as practiced by Benjamin Graham and Warren Buffett. It takes the reader through the realisation that the thought process involved when buying shares in a company is no different to buying the company in its entirety.

Beginning with how to assess the quality of a business, Invest in the Best explains and illustrates with examples what to look for in company accounts, how to determine the value drivers of a business, the strength of its franchise and how to interpret key financial ratios and performance indicators.

The book will concentrate on the investment style of Business Perspective Investing, as practiced by Benjamin Graham and Warren Buffett. It will take the reader through the realisation that the thought process involved when buying shares in a company is no different to buying the company in its entirety. Beginning with how to assess the quality of a business, it will explain and illustrate with examples what to look for in company accounts, how to determine the value drivers of a business, the strength of its franchise and how to interpret key financial ratios and performance indicators. It will discuss the ideal characteristics of a business worthy of investment so that the reader will develop a mental checklist of what to look out for. Next, the book will set out a number of valuation methods to determine the likely economic worth of a company. It is against this estimate that a judgement can be made as to whether the share price offers good value. The book will conclude with thoughts on portfolio construction, in particular Focus Investing, where a concentrated approach is taken, and legitimate reasons for deciding to sell a holding. Throughout, the emphasis will be on the methodology used to manage the Sanford DeLand UK Buffettology Fund.

Keith Ashworth-Lord says:

“I became convinced about the robust investment methodology that Ben Graham and Warren Buffett would describe as Business Perspective Investing in the mid 1990s, around the time of my first visit to a Berkshire Hathaway AGM in Omaha NE. On that occasion, my business partner and I met with Buffett and Charlie Munger in person and we got to know the group of US investors collectively known as ‘The Buffettologists’. Subsequently in 1999, we put on a day-long event entitled ‘The Odyssey, the System & the Success of the Buffett-Munger-Graham Investment Phenomenon’.The venue was the QE2 Conference Hall in Westminster.We invited over from the US six respected Buffettologists: Mary Buffett & Dave Clark,Andy Kilpatrick, Roger Lowenstein, Janet Lowe and Larry Cunningham.

The idea of launching a fund committed to these principles came later. Following more than ten years’ success of putting the principles into action in a personal capacity, I decided to paint on a bigger canvass in 2011.The Sanford DeLand UK Buffettology Fund has gone on to be a consistent top quartile – and mainly top decile – performer over the intervening years. It won Money Observer’s ‘Best Smaller UK Growth Fund’ award in 2015 and 2016 and ended last year as the best performing fund among 270 others in its sector with a 27.2% gain against the backdrop of a falling market. Invest in the Best distills the timeless methodology that has made all this possible.”

“Fascinating insight into how a professional investor finds great businesses that should stand the test of time.A must-read for anyone with aspirations of becoming a professional investor.” Kyle Caldwell, deputy editor of Money Observer

“A thoughtful, reliable, and pithy adaptation of the value investing tradition Warren Buffett popularized. Ideally suited for the serious investor as well for managers who care about what such investors think.”Lawrence A. Cunningham, Editor, The Essays of Warren Buffett, Professor, George Washington University

Keith Ashworth-Lord’s career spans over thirty years in equity capital markets, working in company investment analysis, corporate finance and fund management. He has been Head of Research at Henry Cooke, Lumsden and Daiwa Securities and for many years was Chief Analyst at the investment publication Analyst. He is a Chartered Fellow of the Chartered Institute for Securities & Investment, having formerly been an individual member of the Stock Exchange. He holds the Investment Management Certificate of the United Kingdom Society of Investment Professionals.

Prior to setting up Sanford DeLand Asset Management Ltd and the UK Buffettology Fund, he was a self- employed Consultant working with a variety of stockbroking, fund management and private investor clients. In recent years, he has won four stock picking awards conferred by Thomson-Reuters Star Mine. He is regarded as one of the foremost authorities on the investment philosophy of Warren Buffett and Charlie Munger and a keen student of the teachings of Benjamin Graham and Philip Fisher.